Crusoe Energy, a company that gained prominence by using waste gas from oil production to power Bitcoin mining, has decided to sell its mining operations to New York Digital Investment Group (NYDIG).
Crusoe to Sell Bitcoin Mining Operation
The move marks a significant shift in the company’s focus as it pivots toward artificial intelligence (AI).
According to a March 25th announcement, the sale will include Crusoe’s digital flare mitigation business, which converts flared gas into electricity for mining.
The transaction is subject to regulatory approvals and other necessary consents.
Details of the Deal
As part of the agreement, NYDIG will acquire Crusoe’s entire mining operation, including 270 megawatts of power infrastructure spread across over 425 modular data centers in the United States and Argentina.
Additionally, 135 Crusoe employees will be transferred to NYDIG, ensuring no job losses in the transition. This acquisition allows NYDIG to strengthen its position in the Bitcoin mining sector while Crusoe redirects its efforts toward building AI-focused data centers.
Crusoe Energy was founded in 2018 and became known for its innovative approach to reducing environmental waste by converting excess gas from oil extraction into energy for Bitcoin mining.
However, with the rapid rise of AI, the company’s co-founders, Chase Lochmiller and Cully Cavness, recognized a larger and more lucrative opportunity.
AI Becomes the New Priority
Lochmiller revealed that Crusoe has been investing in AI infrastructure since its inception, and this segment of the business has now become its primary focus.
The demand for AI processors, particularly those developed by Nvidia, has skyrocketed, attracting significant investor interest.
This trend is also evident in the case of CoreWeave, a company that initially started in cryptocurrency but later transitioned to AI and is now expected to debut in the stock market with a valuation exceeding $25 billion.
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Crusoe realized that the infrastructure needs for Bitcoin mining and AI operations were vastly different, requiring unique considerations for uptime, scalability, and energy sources.
The company is also launching a cloud platform that offers on-demand access to high-performance GPUs, with AI workloads already running in Iceland using geothermal and hydropower.
A Strategic Partnership
NYDIG will gain control of Crusoe’s mining technology and infrastructure. Crusoe, on the other hand, will retain a major equity stake in the newly combined entity, second only to NYDIG’s parent company, Stone Ridge.
Lochmiller expressed confidence in NYDIG, emphasizing its ethical business standards and reliability in an industry that has often been criticized for a lack of transparency.
The sale of Crusoe Energy’s Bitcoin mining business marks a strategic realignment toward the AI industry, which is currently experiencing exponential growth.
With a strong emphasis on sustainability, Crusoe aims to build one of the world’s most powerful AI-focused computing clusters. Meanwhile, NYDIG is set to enhance its dominance in Bitcoin mining by integrating Crusoe’s technology and resources.
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